At a glance
- The national index finished the quarter at 67, 3 points above its year-end 2025 level and the second-highest third-quarter reading since 2020.
- Performance across major markets evened out, and AI demand shifted toward more, smaller requirements, according to the report.
- For lenders and allocators underwriting office space, a single national demand curve would miss the 20-point spread between San Francisco's 87 and the national index's 67, up from 2 points at year-end 2025.
San Francisco reclaimed the top spot in the VTS Office Demand Index in the third quarter at 87, up 21 points since year-end 2025, a larger gain than any other market. New York City followed at 84, Connect CRE reported.
The national index finished the quarter at 67, 3 points above its year-end 2025 level and the second-highest third-quarter reading since 2020. It fell 11% from the second quarter and 7% from a year earlier. Performance across major markets evened out, and AI demand shifted toward more, smaller requirements, according to the report.
For lenders and allocators underwriting office space, a single national demand curve would miss the 20-point spread between San Francisco's 87 and the national index's 67, up from 2 points at year-end 2025. New York's 84 sits 17 points above the national figure.
San Francisco pulled 20 points clear of national demand
VTS Office Demand Index reading, year-end 2025 vs. Q3 2026
Show as table
| Item | End-2025 | Q3 2026 | Change |
|---|---|---|---|
| San Francisco | 66 index | 87 index | +21 index |
| National | 64 index | 67 index | +3 index |
Reported by the Sectors desk from Connect CRE and VTS Office Demand Index. Published . Corrections